BOSTON – The U.S. Attorney’s Office has reached a $501,161 settlement with the Institute for Policy Studies (IPS), a nonprofit headquartered in Washington, D.C., to resolve allegations that IPS falsely certified that it was eligible to receive a Second Draw Paycheck Protection Program (PPP) Loan from the Small Business Administration (SBA). As part of the settlement, IPS admits that it certified to the SBA that it was not a think tank primarily engaged in political or lobbying activities, when it had publicly stated otherwise.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Entities that applied for Second Draw PPP loans were required to certify their eligibility for the loan, including that they were not “primarily engaged in political or lobbying activities.”
IPS conducts research and publishes reports to influence public policy. As detailed in the settlement agreement, on Feb. 11, 2021, IPS submitted an application for a Second Draw PPP loan from SBA. In its application, IPS certified that it was “not a business concern or entity primarily engaged in political or lobbying activities,...
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